Deutsche Bank: Sorry, But The Good News In Spain Means Nothing For The Rest Of Europe

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Deutsche Bank's Mark Wall argues that the latest ECB moves aren't enough to end the crisis, and that the drop in short-term Spanish yields means nothing in terms of being a positive sign for the rest of Europe.

We do not think that the latest offering of enhanced credit support can by itself fully deal with the "sovereign debt redemption wall" of 2012. True, 3-year LTROs may help in countries, such as Spain, where the causality of market concerns goes from banks to the sovereign. But we do not think it can be a silver bullet where the causality comes from issues with public debt sustainability, such as Italy, to banks.